The State Bank of India (SBI), which had recorded debt recovery suit against Prashant & Ravi Ruia, before the Debt Recovery Tribunal (DRT) Ahmedabad, has been adjourned to 15th May.
On Monday, a hearing was programmed for debt recovery suit filed seven months ago by SBI seeking attachment of global assets of Ruias to recover its balance Essar Steel dues, through debt recovery proceedings at the DRT.
However, as per the SBI’s petition filed at DRT Ahmedabad, SBI wants to recover Rs11000 crore, as per the lawyers at the court stated.
Essar Steel lenders headed by the SBI have saddled with dues of over Rs 63000 crore, including overdue interest and penalties. As per Arcelor Mittal’s Insolvency Bankruptcy Code (IBC) resolution plan, SBI will receive only a part of its dues (Rs 42000 crore), leaving lenders with balance dues, which includes principal, overdue interest and penalties.
“Total admitted dues of the secured creditors as verified by the Resolution Professional of Essar Steel are Rs 45000 crores. Essar Steel Asia Holdings Ltd has already offered to repay the secured creditors these dues in full, and Arcelor Mittal plan provides for 42000 crores” stated Essar Spokesperson.
While employee close to the development told ET that the admitted claims of secured financial creditors of ESIL amounted to Rs 45000 crore. Now as per Arcelor Mittal resolution plan, secured financial creditors will get estimated Rs 42000 crore i.e. 92%. Further, EBITDA earned by ESIL during CIRP period is to be paid to the creditors. Thus, there will hardly any shortfall to secured financial creditors.
He further stated that personal guarantees were extended for only part of secured loans (approximately Rs 11,000 crore). Considering recovery as above from the approved resolution plan, there may not be any shortfall and guarantees are not at risk.
In simple words, the SBI petition was filed about seven to eight months ago, claiming to recover Rs 11,000 crore personal guarantees from Ruias for Essar Steel loans. Meanwhile, recently on March 8, 2019, National Company Law Tribunal (NCLT) court cleared Arcelor Mittal resolutions to plan of Rs 42000 crore. Now out of Rs 45000 crore, Rs 42000 crore is paid by Arcelor Mittal, the remaining Rs 3000 crore stands as liability remaining to be paid.
As per the description is given by employees close to the development, approximately Rs 2500 crore is EBITA earned by ESIL which has been received by the lenders, thus roughly Rs 400- Rs 500 crore is the actual outstanding remaining/liability.